Celestica: 3 Reasons To Buy (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Celestica has handily outperformed the S&P 500 since my last bullish update on the stock. After Q4 FY24 earnings, I retain my bullish views on the stock.
• I think Meta's blowout capex guidance for FY25 may be a key driver of growth for Celestica's networking products for high performance compute applications business.
• Impressively, Celestica is finding ways to manage inventory more efficiently even whilst servicing high and growing demand, reflecting a smooth supply chain and accurate demand forecasting.
• Valuation risk is there as CLS stock trades at a ~28% premium vs peers. But CLS is in a very strong uptrend and there is no reason to fight it.
• DeepSeek may shift enterprises' focus toward optimization of models, and Celestica may be well positioned to benefit.

Read the full article here.